CBA wins airports tender

A consortium led by the Commonwealth Bank has bought the Bankstown, Camden and Hoxton Park airports for $211 million.

The Government announced on Friday it had sold the airports - known as the Sydney Basin Airports - to the BaCH Airports Consortium following a competitive tender process. The Commonwealth Bank, James Fielding Group and Toll Holdings sponsored the consortium's winning bid.

James Fielding, Westscheme Pty Ltd and CBA's investment subsidiary funded the purchase. CBA also provided infrastructure and property debt as funding and acted as financial adviser for the transaction.

"The purchase price represents excellent value for the three airports," BaCH said in a statement, citing both the aviation opportunities, and potential to further develop the sites.

The sale completes the Government's program of privatising the country's airports. Finance Minister Nick Minchin said the Government had raised $8.5 billion by selling off the airports and used the money to reduce Commonwealth debt.

Labor called on the Government to spend the proceeds of the Sydney Basin Airports sale on infrastructure.

"These are the proceeds from the sale of public infrastructure that should be returned to public infrastructure," transport spokesman Martin Ferguson said.

The Transport Minister, John Anderson, said the airport operators would have to prepare draft plans for the airports within 12 months after the completion of the sale. "This will ensure that there can be no major developments at the airports without full public consultation," Mr Anderson said.

Camden airport is expected to remain unchanged as a centre for recreation aviation activities. Hoxton Park has been sold with a shortened five to seven-year airport lease. When the lease expires, the freehold title will transfer to the lease owner, who will then decide the best use for the site.